Equity options are a form of derivative used exclusively to trade shares as the underlying asset.

In trading, equity can mean several different things. However, it usually comes down to the ownership of an asset without any debt involved.

EDSP stands for exchange delivery settlement price, and refers to the price at which exchange-traded derivative contracts are settled. Stock exchanges use EDSP to calculate the amount that each party to an options or futures contract owes at the time of that contract’s expiry.

A dividend is the portion of the profit that a company chooses to return to its shareholders, usually expressed as a percentage.

Depreciation is the term given to the decline in an asset’s value, either due to market conditions or other factors like wear and tear. It is the opposite of appreciation.

A derivative’s delta is defined as its price movement in relation to the change in the price of its underlying asset. It can also sometimes be referred to as a hedge ratio and is most often used when dealing with options.

The debt ratio is an indication of how much debt a company is holding when compared to the value of its assets. It can also be applied to individuals: in which case it is the cost accrued by their debt compared to total income each year.

Day trading is a strategy of short-term investment that involves closing out all trades before the market closes.

Custodian has a particular significance in relation to IG's platform. Here, we define custodian in general investing and explain what it means to you when trading with IG.

A currency peg is a governmental policy of fixing the exchange rate of its currency to that of another currency, or occasionally to the gold price. It can sometimes also be referred to as a fixed exchange rate or pegging.

A currency future is a contract that details the price at which currency could be bought or sold and sets a specific date for the exchange.

Currency depreciation is the decline of a currency’s value relative to another currency. It specifically refers to currencies in a floating exchange rate – a system in which a currency’s value is set by the forex market, based on supply and demand.